"The private rented sector is a significant driver of labour and social mobility. It enables people to move for work, access higher education, and seize new opportunities – everything the Government wants to promote as part of its growth agenda"
- Ben Beadle - NRLA
Imposing further taxes on the rental market could significantly undermine the Government’s ambitions for economic growth and social mobility, according to the National Residential Landlords Association (NRLA).
With the Chancellor set to deliver a pivotal Budget in the coming weeks, the NRLA is calling on the Government to recognise the private rented sector as a vital driver of economic opportunity. In England alone, around 11 million renters rely on the sector for the flexibility and mobility needed to access education, training, and jobs across the country.
A report for the NRLA by former Treasury official Chris Walker highlights how renters tend to live closer to town and city centres, as well as their workplaces, than homeowners. The research found that 45% of private renters live within 5km of their place of work, compared with 29% of owner-occupiers, demonstrating the sector’s role in “supporting opportunity, career progression and productivity.”
This view is shared by Nationwide Building Society’s specialist buy-to-let lender, which notes that the sector “has an important role to play in economic growth by supporting labour mobility.”
NRLA analysis also shows that private renting is more likely than social housing to give aspiring first-time buyers a platform to purchase their first home. Government data indicates that 25% of new owner-occupiers previously rented privately, compared with just 1% moving from social housing.
Small and medium-sized landlords also support nearly 400,000 jobs across the UK, according to PwC, while research by Aldermore Bank shows landlords spend an average of £6,000 annually on local services, with almost four in five using local tradespeople to maintain or improve properties.
Despite this contribution, a shortage of homes for private rent is limiting growth and productivity. Zoopla reports that available rental properties are down 10% compared with 2019, while tenant demand has risen 23% over the same period.
Former Institute for Fiscal Studies head Paul Johnson, speaking on the NRLA’s ‘Listen up Landlords’ podcast, warned that higher taxes would reduce the number of homes available to rent and push rents higher for tenants.
Ben Beadle, chief executive of the NRLA, said: “The private rented sector is a significant driver of labour and social mobility. It enables people to move for work, access higher education, and seize new opportunities – everything the Government wants to promote as part of its growth agenda."
“Instead, landlords are facing yet more speculation about tax hikes that would hinder investment, reduce supply, and ultimately drive-up rents.
“The Chancellor must use this critical Budget to back responsible landlords who provide good homes and support local economies. That means using the tax system to encourage long-term investment, as opposed to prioritising short-term revenue grabs.”
